Royal Mail to slash jobs to raise profits

[TrueBlueTerrier]

http://www.express.co.uk/finance/city/4 ... se-profits" onclick="window.open(this.href);return false;

Cut-throat competition from rival parcel couriers has hit Royal Mail and it is pinning its hopes on job cuts and efficiency improvements to deliver on annual targets.

Price-cutting by the likes of UPS, TNT and Yodel contributed to a one per cent fall in parcel revenue in the three months to June 29, the formerly state-owned postal group said.

It also blamed the strength of the pound, strong comparative revenue last year from price rises and online retailer Amazon’s decision to do its own deliveries.

But Royal Mail was confident of matching full-year expectations thanks to cost-cutting, including about 1,600 job cuts announced in March that should save it £25million this year.

UK letter volumes declined by a ­better-than-expected three per cent while revenue rose similarly thanks to price rises and mail related to European and local elections.

Royal Mail chief executive Moya Greene said: “Given the increasing challenges we face in the UK parcels market, our parcels revenue for the year is likely to be lower than we had anticipated.

Royal Mail was confident of matching full-year expectations thanks to cost-cutting

“However, through cost controls and with continued good letter performance, we expect to be able to offset the impact.”

The company, which was controversially privatised last October, has demanded action from regulator Ofcom to stop rivals cherry-picking its best business.

It is fighting back by launching Sunday deliveries by Parcelforce, which handles bigger parcels, and trialling Royal Mail ­deliveries of smaller parcels within London’s M25.

It has also begun allowing people to pick up packages from their local post offices instead of having to go to ­sorting offices.

The shares fell 16p to 450p. Hargreaves Lansdown’s Richard Hunter said: “The weakness in parcels is a concern and may prompt questions as to whether this is transient, or whether the change is structural.”

[Red Robbo]

No suprise there then .

[Gold Fox]

VR and EVR on its way ??

[Phantom]

This proves RM are not interested in growing the business. CWU pull your f***ing finger out and smell the coffee for f***s sake!

[Gold Fox]

RM is going to squeez our throats and make us unemployed .... this is the time to take action ... work to rule.

[123456]

the c.w.u has know become the royal mail union,even since before privatisation the writing was on the wall..they represent the business now.

[Gold Fox]

If this is the fact then let management live and workforce die ...God bless CWU .....

[Brain Fury]

The only job losses mentioned in the article are the 1600 managers that have gone or are going shortly.

[zazza73]

Hi all,I work full time in Barnsley just been told having my hours cut to p/t this now will be the 3 time they have done it just like to say what a joke royal mail is I now have to explain to my wife and kids why this has happened,yet again been screwed over